Prices unpredictable in gold jewelry resale market CBC.ca
People hoping to cash in on the gold rush by selling their gold jewelry are advised to shop around since a CBC News investigation found that what buyers will pay for the same piece of jewelry varies widely.
CBC-TV's investigation unit went undercover to three gold buyers in Winnipeg to see how much they would pay for a gold necklace and four rings that had been appraised at more than $1,000. The offers varied from $275 to $600 for the batch.
Since 2005, gold has climbed to more than $1,100 US an ounce. Canadians bought four times the number of gold coins in 2009 than in 2007, according to the Royal Canadian Mint.
Winnipeg appraiser Gerry Gordon, who prices jewelry for insurance claims, told CBC that a person selling the chain and rings back to a buyer would likely get between $600 and $700. And while that may sound like a poor return on something that once cost more than $1,000, most of the gold quotes CBC got were well below that.
At Celia's Jewelry, the buyer offered nearly half of Gordon's recommended amount.
"Since I'm buying this for scrap, you're probably looking at $350, $375," said the employee examining the pieces.
At Broadway Pawn shop in the city's downtown, the price was worse.
"You'd get about $160 for the chain," said the man behind the counter when CBC showed up. He was willing to pay $275 for the whole collection.
Payday loan outlet offers best priceOne recent entrant into the gold market is the payday loan industry, which has been criticized for charging exorbitant interest rates for short-term loans.
